KUALA LUMPUR (Dec 2): UEM Sunrise Bhd is disposing of 17 parcels of land in Perak, measuring a cumulative 1,776.6 acres to Sunsuria Bhd for RM75.52 million, as part of the group’s strategy to monetise non-strategic lands.

In a bourse filing on Friday (Dec 2), the property developer said the group’s indirect wholly-owned subsidiary, Symphony Hills Sdn Bhd, entered into three sale and purchase agreements with Sunsuria’s 65%-owned subsidiary, Tapah Land Development Sdn Bhd, for the disposals.

Notably, four of the parcels of land, measuring 42.9 acres, are affected by the settlement of a group of indigenous people, UEM Sunrise said.

“The proposed disposal is in line with the company’s three-pronged turnaround strategic plan to transform the company into becoming a balanced real estate player, with the immediate goal to strengthen financial performance, revitalise and strengthen product portfolio, including monetising non-strategic lands and streamlining core businesses to allow the company to be more focused,” UEM Sunrise said.

“The consideration for the lands is computed based on the size of the lands less the affected area,” it added, noting that the remaining parcels are being used for the harvesting of palm oil and cash crops.

UEM Sunrise said the disposal consideration was arrived at on a willing buyer-willing seller basis, after considering the valuation carried out on the lands by Messrs Khong & Jaafar Sdn Bhd dated Nov 15, 2021, of RM68 million, based on the lands’ existing conditions and subject to the land titles being free from encumbrances.

“The proposed disposal is anticipated to be completed towards the end of 2023,” it noted. The group’s filing did not disclose the planned utilisation of the disposal’s proceeds.

Meanwhile, Sunsuria said it plans to use the land to expand its existing property development activities and tap into a new area of west coast Malaysia.

“The proposed acquisition will increase the development land banks of Sunsuria and will enable the group to leverage on its successful business model of providing affordable and quality landed properties,” Sunsuria said in a bourse filing.

Shares in UEM Sunrise finished one sen or 3.57% higher at 29 sen on Friday, giving the group a market capitalisation of RM1.47 billion. Sunsuria’s shares closed three sen or 7.32% lower at 38 sen on Friday, giving it a market capitalisation of RM340.45 million.

Source: EdgeProp, 2 December 2022.